Story Highlight
– Luxury cruising’s passenger volume hit 37.2 million in 2025.
– Watch brands find opportunities in luxury cruise retail.
– Cruise retail allows immersive brand engagement over time.
– Impulse purchase rates on cruise ships approach 47%.
– Younger, diverse audiences drive changing watch assortments onboard.
Full Story
For many years, the travel retail sector was synonymous with airports, where the watch industry thrived amid duty-free shops catering to hurried travellers making last-minute purchases. However, the dynamics are shifting as luxury cruising gains traction, attracting the attention of watch manufacturers. According to the Cruise Lines International Association’s 2026 State of the Cruise Industry report, a record 37.2 million passengers embarked on cruises in 2025, with a strong inclination for repeat bookings. Furthermore, projections suggest that the luxury cruise fleet will grow from 104 to at least 130 vessels by 2036, indicating substantial investment in high-end cruise experiences.
For luxury watch brands, cruise ships are transforming into curated retail spaces that facilitate deeper brand interactions, often lacking in traditional travel retail scenarios. Keisha Daly, category manager of watches at Harding Retail, notes, “The world of luxury cruising is one of the most exciting and aspirational vacation experiences that you can discover across the oceans.” She highlights the variety of luxury offerings aboard, which range from ultra-luxury vessels to unique ships entering the market. This burgeoning segment of the cruise industry is increasingly pivotal for brands aiming to establish exclusivity and desirability.
As the landscape of travel retail evolves, cruise retail is emerging as a distinctive platform. Earlier this year, Bob’s Watches, a pre-owned watch specialist, expanded its presence in airport retail, yet this move underscores a growing confidence in luxury timepieces catalysed by consumer acceptance of purchasing high-end watches outside conventional jewellers. While airports maintain their strategic importance, cruise environments offer something fundamentally unique: time for customers to immerse themselves in the offerings.
Daly articulates this difference, stating, “While cruise and airport both sit within travel retail, they offer quite different environments particularly when it comes to watches.” She maintains that the cruise setting fosters deeper engagement, enabling brands to share their heritage and foster connections through various touchpoints. This allows consumers to explore their watch preferences over several days, contrasting with the rapid decisions typical of airport shopping.
The advantage of cruise retail also lies in the attention it garners from customers, particularly during days spent at sea, which foster relaxed and engaged audiences. “Days at sea…mean captive, relaxed audiences with hours, not minutes, to engage,” says Daly, suggesting that this extended interaction is prompting retailers to innovate the luxury shopping experience onboard. Events resembling experiential marketing campaigns, such as themed tournaments and brand takeovers, are becoming commonplace aboard ships.
Market data reveals the efficacy of these cruise retail strategies, with impulse buying rates approaching 47%, clearly illustrating the blend of emotional engagement with luxury aspirations. The compelling business performance of these retail spaces has also shifted perceptions regarding the sale of luxury watches. “The clearest answer is to compare like with like,” Daly explains, noting that ships featuring Tudor consistently outperform many traditional retail locations in the UK, highlighting a significant shift in sales dynamics.
With many cruise lines offering tax advantages over airport retail, this aspect becomes crucial in the current market where the UK luxury sector grapples with the impact of changes to VAT-free shopping for international travellers. Exclusive products and cruise-only collaborations continue to enhance the appeal of onboard shopping, encouraging experienced cruisers to plan their purchases with a focus on value and unique offerings.
The demographic landscape of cruise passengers is also shifting, attracting a younger and more varied audience, which presents opportunities for watch brands to tailor their offerings. “The demographic shift presents a real opportunity to grow the category further,” explains Daly. The assortment of watches on offer is crafted to meet the diverse preferences of the evolving clientele.
Brands are increasingly viewing cruise retail not only as a transactional opportunity but as a platform for creating memorable luxury experiences. “First, access to a pre-qualified audience that’s genuinely hard to reach elsewhere. Second, the ability to deliver brand experiences at a true flagship standard,” Daly comments, emphasising that luxury purchases need the right atmosphere for engagement.
Looking ahead, the pace of change is accelerating, particularly as watch brands begin to prioritise cruise retail in their global strategies. According to Daly, this movement reflects a broader recognition of the value that cruise environments can provide. With substantial investment underway in the cruise sector, including orders for 78 new ocean ships worth around $80 billion, the potential for luxury retail space is set to expand significantly.
As the cruise industry continues to thrive, it is clear that watch brands will need to adapt and embrace these evolving retail environments, allowing them to engage affluent customers more effectively and improve commercial outcomes in this dynamic market.
